Darren Little
Williamson, GA (USA)
Role(s):
Founder/Owner/Principal
The Little Company
Find More Startups
Startup
Location:
Williamson
Industry:
Food Service/Restaurant
Year Founded:
2008
Number Employees:
1-10 people
Description:
Vending Route Details
7 Machines total, all less than 2 years old.
5 machines are placed in secure locations and 2 remain in storage.
All machines are placed within a 3 mile radius near the Marietta Square.
Positive Cash Flow Analysis
Route is currently serviced every two weeks.
The Positive cash flow currently averages $450-$500/month without much attention.
With increased promotions, more frequent visits and placement of the two additional machines this number could easily increase to $850-$900/month.
The second part of this plan is to acquire a 2002 Jeep Grand Cherokee Limited.
This Jeep has been leased and in my possession since September of 2007.
It has 114K miles on it and every option available except for adjustable pedals and navigation. It is a 4x4 and has an automatic transmission.
This Jeep will become part of the vending business and/or could possibly be sold with owner financing/lease purchase.
The following is an example of owner financing/lease purchasing:
A minimum down payment of $1500
Owner financing @ a minimum interest rate of 18% for a term not to exceed 36 months.
Retail Value of Jeep: $11,000
Down Payment: $1,500
Amount Financed: $9,500
Monthly Payment: $343.45
($9,500 @ 18% for 36 months)
If a $13,000 loan is financed @ an interest rate of 12% for 36 months the monthly payment equals $431.79.
The current average positive monthly cash flow from the vending route will cover this payment. If the Jeep is sold as presented in the previous example, it will create a minimum of $343.45 in additional monthly cash flow bringing the positive monthly cash flow total to $793.45.
How the $13,000 will be distributed:
$8,000 will purchase the Jeep.
$3,500 will purchase the vending route.
$1,500 will remain in an interest bearing savings account as reserve capital.